The Goodsmith Charitable Foundation, which is tax$-$exempt, issued

debt last year at $13$ percent to help finance a new playground

facility in Los Angeles. This year the cost of debt is $25$ percent

higher; that is$,$ firms that paid $15$ percent for debt last year will

be paying $18\mathrm{.}75$ percent this year.$$

a$.$ If the Goodsmith Charitable Foundation borrowed

money this year, what would the aftertax cost of debt be$,$ based on

their cost last year and the$25$ percent increase? $($Do not

round intermediate calculations. Input your answer as a percent

rounded to $2$ decimal places.$)$

$$AFTERTAX COST OF DEBT$=$b$.$ If the receipts of the foundation were found

to be taxable by the IRS $($at a rate of $35$ percent because of

involvement in political activities$),$ what would the aftertax cost

of debt be$?($Do not round intermediate calculations. Input

your answer as a percent rounded to $2$ decimal places.$)$

$$AFTERTAX COST OF DEBT$=$